Fitch cuts Sistema view to negative

Fitch Ratings said it affirmed Sistema JSFC's long-term foreign- and local-currency issuer default ratings at BB-.

The outlook was revised to negative from stable.

The negative view reflects increasing refinancing and liquidity risks at the Sistema holding level and building pressures to potentially provide support to some of its weaker subsidiaries that have found themselves in a deteriorating operating and financial environment, Fitch said.

The ratings continue to be underpinned by strong cash flow generation at Mobile TeleSystems, its key mobile subsidiary, and the holding company's flexibility to influence Mobile TeleSystems' dividend payments and cash management, the agency said.

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